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M. Ramesh

The last few years have been tough for the Indian granite industry. But there is a niche market waiting to be tapped... value-added products like sculptures and monuments are much sought after in the West.

The masked craftsman could easily be mistaken for a terrorist crouching with a gun. His face is covered by a mass of dirty, crumpled linen. Only his eyes are exposed — sharp and alert — a single mistake can cost a few lakhs of rupees. The crude cloth-mask is his only protection against the fine granite dust thrown up each time he gnashes the hand-held grinding wheel against the hard stone. Initially, the wheel makes some unintelligible cuts on the stone. But little by little, the contour of a figure emerges. A complex sculpture is in the making... two swans in an amorous huddle, their necks entwined. Its destination: a five-star hotel in Germany. The makers: Om Exports, a Rs 12-crore small-scale unit in Chennai.

Welcome to the new Stone Age, an era in which the much-battered Indian granite industry seeks to revive its fortunes. In the 1980s, the Indian granite industry evolved out of the waning fortunes of its European counterpart, which was killed by high costs. A new industry with chunky margins attracted all, but the players soon lost out owing to mindless investments and slit-throat competition. The biggest problem was a lack of understanding of the material as well as its availability. Non-value added exports, idle machinery and the entry of Chinese players who quickly captured the low-end market — tiles and standardised slabs — added to the misery of the Indian granite industry. But, today, those who survived the tough times have found a niche market for custom-built granite furniture and sculptures. Om Exports, for instance, which hitherto used leased facilities for its manufacturing, has set up its own unit at a cost of about Rs 5.5 crore.

N. Ashoken, chairman and managing director, says there is a big demand in Europe and the US for custom-made products. In Germany, potential customers include people renovating old castles to convert them into hotels. If you've ever taken a Rhine river cruise, you'd recall the several castles on its banks. One buyer wanted bar counters and centre tables that could blend with the interiors of a medieval castle. That order opened up a new business opportunity for the company. Upper-end products command a premium. Bathroom fittings, for example, comprising a washbasin with taps and a mirror frame, could fetch around Rs 60,000. A bar table, made of different coloured stones, could cost Rs 1-1.5 lakh. The company has also produced an eight-ft high seahorse from a single block of stone for a seafood restaurant in Germany.

European hotels would think nothing of spending 10,000 euros (about Rs 6 lakh) on one of his products, says Ashoken.

A hand-made eight-ft long red-stone dragon, under production for a European client, costs around Rs 7 lakh. A CNC (computer-aided cutting) machine cannot even take the weight of the stone. Pointing to the small scales on the dragon's tail, Ashoken says, "These areas are challenging to make. One small mistake and the value will decline by 50 per cent."

The company's turnover has risen from Rs 5 crore in 1998-99 to Rs 12 crore in 2003-04 and is expected to grow 15 per cent in the current year and double in three years. Rising costs and the Chinese competition are among the challenges facing the industry.

Today, one cubic metre of granite costs Rs 20,000-50,000; nearly double what it was five years ago. Transportation of raw blocks, some of which come from North India, add to the cost. The depreciation of the rupee against the euro offsets these costs only to a small extent.

So, how big is the market? "As big as you can make it," says Ashoken. If Europe is a big market, the US is bigger. "And we haven't even started in the US."

Picture by Shaju John

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